Bitcoin price breaks below the key 200-weekly moving average (WMA) level causing a massive sell-off in the broader crypto market. BTC price tumbled below $26,100 briefly, after a downfall of more than 5% in the last 24 hours. Ethereum (ETH) price also fell more than 5% to below $1750, bringing a free fall in the crypto market as the selloff intensifies.
Bitcoin Price Breaks Key 200WMA
Bitcoin price has been continuously falling for seven days now and failed to hold support levels. Several factors including macro, along with crypto market uncertainty, meme coin season, and liquidity issues have put Bitcoin price under selling pressure. In fact, the problems are not over yet as May turning out to be a crucial month for the crypto as well as traditional markets. BTC To Fiat Converter
BTC price briefly fell below the key 200-WMA level, which is considered a crucial indicator of price direction in the crypto market. Bitcoin is falling below the level after rising above the level in mid-March. Technical indicators such as Bollinger Bands and RSI indicate weakness in Bitcoin upside momentum, with a potential fall to $24,600.
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In the 1-hr and daily timeframe, BTC price is already showing patterns of further downfall. Currently, the BTC price is trading above 100 DMA and is poised to break it soon. The RSI fell to 34 today, indicating a weakness in Bitcoin.
Moreover, Ethereum (ETH) against Bitcoin (BTC) is showing weakness and altcoins are in correction. ETH/BTC failed to break the 0.069 level for a bullish move and start an altcoin season. Contrarily, ETH/BTC fell to 0.066 in the last few days.
Meanwhile, the implied volatility (IV) for ETH has hit lower, especially ETH short-term IV falling all-time low across all terms. Ethereum price risks falling to $1500 if it breaks the crucial support levels.
Also Read: Ethereum Price Risks Falling 17% Amid Strong Investor Pessimism, Implied Volatility ATL
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin price awaits a strong upside move as it prepares to cross $25,000 again amid easing macro impacts and the banking crisis. Investors anticipate a lower rate hike by the U.S. Federal Reserve as it plans emergency funding as banks capitulate to aggressive rate hikes.
The European Central Bank to hike rates by another 50 bps today despite inflation cooling in the Eurozone, downplaying contagion to European banks from the US banking crisis. Meanwhile, stocks and futures have rebounded after Credit Suisse received $54 billion from the Swiss central bank.
On-chain data indicates Bitcoin and Ethereum Coinbase premium index rose after the US regional banks collapsed, which caused strong buying pressure from U.S. investors. People are removing money from banks and investing in crypto. The price action of Bitcoin indicates it holds strongly in 24-25k and looks to actually break the $25k level soon. The Coinbase premium is again rising.
Analysts Support Strong Bitcoin Price Movement
Popular crypto analyst Skew revealed that BTC Binance Spot Orderbook Movements clearly show buy orders are being placed to push Bitcoin price higher. Typically, buy orders attract perp buyers to fill spot sell orders above.
Crypto analyst Ali Martinez predicts another bullish Bitcoin price action over the weekend if Bitcoin is moving in a technical pattern of Bullish Megaphone.
#Bitcoin | If this bullish megaphone is the governing pattern behind $BTC price action, we could be about to witness another bullish weekend! pic.twitter.com/Ygy0w4bKUC
— Ali (@ali_charts) March 16, 2023
Another popular analyst Michael van de Poppe predicts another upside in Bitcoin and Ethereum as he remains bullish amid current events. Traders must keep an eye on the ECB rate hikes and the U.S. jobless claims that will determine another largest jump. He believes the market will witness a continuation of the earlier rise, under higher unemployment numbers.
If Bitcoin ends the week above 200-WMA at $25.3K, it will confirm another massive move above $26K towards the $30,000 psychological level.
BTC price currently trades at $24,907 as it touches the $25K level continuously, with traders awaiting key data amid other bullish signals. Meanwhile, Ethereum price is trading at $1,664, down over 1% in the last 24 hours.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin price climbs nearly 5% in the last 24 hours to hit a 24-hour high of $24,924. While macro indicators and hawkish U.S. Fed comments dragged down BTC price from a high of $25,134 earlier, fresh data has lifted the price again.
Moreover, the market sentiment remains positive, with the Bitcoin Fear and Greed Index at 60. Traders are also wondering if the recent rally is a bull trap and taking caution due to “Greed” sentiment in the market. However, there’s a key level that expert investors are watching.
Level To Watch Out For Bitcoin Price
BTC price is currently trading at $24,585. Surpassing the $25,000 psychological level will be a key momentum gainer for the market. However, investors must keep an eye on a key level to confirm a bullish momentum — the 200 Weekly Moving Average (WMA).
The 200-WMA is one of the most effective indicators that a trader uses to help identify long-term changes in direction of Bitcoin. The recent decline in Bitcoin price came as a result of resistance at 200-WMA, which is right above $25,000.
If Bitcoin rallies above $25,000 and hold above the level, a major bullish rally will likely follow. However, it’s a strong resistance too and breaking above that level will be challenging.
Meanwhile, the RSI at 60 shows strength in the Bitcoin price and Bollinger Bands are opening wider. Thus, the indicators are bullish on Bitcoin and signal an upcoming price rally above $25,000.
Also Read: Bitcoin Price Still Bullish To Hit $30K, Predicts On-Chain Data And Crypto Analyst
Macro Indicators Impacting BTC Price
The U.S. Dollar Index (DXY) dropped to 103.88 after hitting a high of 104.67 in the last 24 hours. A further drop in U.S. dollar strength will bring more upside move in Bitcoin price.
Meanwhile, oil prices and U.S. 10-Year Treasury bond yield are also declining. It will force the U.S. Federal Reserve to keep interest rate hikes away from the table and announce a pivot later.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
September has always been the worst month for Bitcoin historically. Bitcoin (BTC) price struggles to reach the 200-WMA at $23K as it continues to dive below $20,000. However, the technical and on-chain data suggest the Bitcoin price should now rebound again to the 200-WMA.
Bitcoin (BTC) Price Awaits Massive Price Rally
The volatility in the crypto market due to the Federal Reserve’s hawkish stance on rate hikes has kept the Bitcoin (BTC) price at bay. Interestingly, the price decline caused more people to take the “buy-the-dip” opportunity.
As mentioned in the previous report, if the number of new daily addresses rises above 415,000 it will confirm a Bitcoin bottom and bulls will take over. According to Glassnode data, new daily addresses on the BTC network have jumped over 417,354. Thus, the outlook is bullish and the Bitcoin price should start rising again.
Crypto analyst Ali Martinez in a tweet reveals that the BTC movement in the four-hour timeframe indicates the Bitcoin price rebounds each time it reaches the rising RSI trendline.
“The question is whether, this time around, the trendline will hold again and help BTC regain some of the losses incurred.”
Meanwhile, Bitcoin price shows no signs of support from miners and whales as buying pressure remains weak. In fact, addresses holding 1000 BTC or more continue to decline. Recently, several dormant Bitcoin whales have sold their holdings. On the other hand, miners’ reserves have declined continuously this year. As per data by CryptoQuant, miners’ reserves are currently 1.86 million.
However, almost 73.25% of all accounts with a BTC open position are going long on Binance Futures. It indicates the traders are buying at current levels.
Major Triggers of Upside Movement
The Bitcoin (BTC) price trend will mostly depend on the Fed rate hike on September 21. While the 100 bps rate hike is on the table, Wall Street banks such as Goldman Sachs believe the Fed will go with a 75 bps rate hike.
A continuous fall in the US dollar index since September 7 spurred bullish sentiment in the market to push the BTC price over $22,000. However, the US dollar index has again jumped over 110. A decline in the index will confirm a bullish move.
Institutional buying has increased at the current level. In fact, MicroStrategy buying more bitcoins is the major trigger here to push the price to the 200-WMA.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The world’s largest cryptocurrency Bitcoin (BTC) has once again come under selling pressure and is currently trading 2.15% down at a price of $20,686 with a market cap of $394 billion.
This is for the very first time that Bitcoin has formed a third consecutive weekly candle below its 200-Week Moving Average.
Last week, Bitcoin witnessed some buy-side volumes pulling the crypto to $22,000. Popular market analyst Rekt Capital draws an analogy to the 2018 bear market. The analyst writes:
Last week, BTC printed similar buy-side volume to the 2018 Bear Market Bottom at the 200-week MA During the formation of the 2018 bottom however, that buyer volume preceded extra -20% downside If $BTC were to drop an extra -20% soon, price would reach ~$16400.
Will Bitcoin DownTrend Continue Further?
The recent Bitcoin price correction comes on the heels of heavy offloading done by Bitcoin miners. As per banking giant JPMorgan, these sales might continue to put pressure on Bitcoin. In a note to clients, the JPMorgan strategists said:
“Offloading of Bitcoins by miners, in order to meet ongoing costs or to delever, could continue into Q3 if their profitability fails to improve. The offloading has likely already weighed on prices in May and June, though there is a risk that this pressure could continue.”
The cost of Bitcoin mining as of date could vary depending on the size of Bitcoin production. For a large mining company, the BTC production costs stand somewhere around $8,000.
Also, on-chain data provider Glassnode explains that the 2020 bear market has been the worst on record. In its report, Glassnode notes: “Spot prices are currently trading at an 11.3% discount to the realized price, signifying that the average market participant is now underwater on their position”.
During the Bitcoin price crash earlier this month, investors locked a loss of -$4.234B in a single day, a huge 22.5% higher than its previous record of $3.457B set in mid-2021.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.